Human Resources – When To Go In House And When To Outsource HR

Once a business starts to take off and perhaps rocket fire to a whole new level, it may be time to start thinking about putting more time into your back office and operations that take place behind the scenes. These tasks generally involve responsibilities to take care of interview coordination, managing benefits, the more complex side of administration, and so on. As much as this is doable to do internally, it’s not, by all means, an easy role to take on. HR is multifaceted and finding an employee who can manage a broad range of skills single-handed is a hard job to find. Instead, it usually ends up with multiple workers performing as a team- but working on an individual skill basis- to address all of the aspects surrounding HR and lets’ face it, this is the costly approach to take.

What are the benefits of outsourcing HR?

By outsourcing HR, first and foremost, you will be able to free up the person or team you currently have, that is doing these tasks, and assign them to other working duties inside the company that might be more suited to their expertise.

Also, with a professional HR consultant, compliancy (something that no company can ever afford to get wrong) is managed at the highest standard. They address all matters, including the morale of workers and ensuring regulations and rules are followed, and the workplace is happy and striving.

What needs to be outsourced?

As we mentioned above, HR is multifaceted so it may not be a case of outsourcing everything but more so finding the right balance for your company. HR consultants can help in many areas, they work to help companies with good recruiting, teamwork and culture or the company, but they can also manage areas such as payroll, benefits, and so on.

Most companies will use outsourced HR for some of the following areas:

  • Training programmes
  • Compliance matters related to employees
  • Internal Audits/Background screening
  • Performance management and finding ways to improve areas
  • Act as a counsel for employees- EAP (employee assistance program)

Each company has its own needs. Not all are the same, some companies like Outsourcing HR To manage almost everything, whereas others will use it for specific areas only, there are no set rules when it comes to HR. Human Resources management is vital for all companies, whether you choose to the internal or external approach one of the main things to consider is the cost, weighing up the pros and cons and finding something that benefits your business the most.

Thanks for the support